Renegotiate the mortgage

Mortgage is, in many cases, the main investment of the life of a person and a decision that forces us for a long period of time to meet the conditions agreed in the mortgage loan. When the evolution of interest rates hurt us and it translates into an unexpected rise in the mortgage payment, the best solution is look for alternatives that allow us to change the conditions of the mortgage and reduce the fee to be paid.

In this sense, there are several legal options that allow borrowers to renegotiate the characteristics and conditions of the credit they hired at the time. That way, they can accommodate their debt to the new financial conditions in a way that is beneficial to them.

The two options that exist to modify the terms of the mortgage that allow reducing the fee to be paid are the novation and the subrogation of mortgage. These formulas consist of renegotiating the credit conditions, either with the entity that granted us the mortgage, or with another entity to which we transfer our mortgage to enjoy better terms.

It consists of the modification of an obligation by a later one that extinguishes or modifies the first. In this case, it is possible to make the following changes in the mortgage:

  • Modification of the interest rate.
  • Reference index change.
  • Realization of capital increases.
  • Implementation of reductions or extensions in the repayment term.


Mortgage subrogation is a mortgage change operation from one financial institution to another. Logically, this is done with the objective of obtaining a decrease in the interest rate. The so-called subrogation mortgages are mortgages that, on many occasions, are offered at a better rate than those that do not admit subrogation, being more attractive and accessible for mortgaged.

Due to current market conditions, we find less and less subrogation mortgage alternatives, with interests that are no longer competitive and a general decrease in the subrogation offer.


Video: renegotiate yor mortgage (April 2020).

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